So I think as you’re comparing kind of a year-over-year first half to second half, you’re going to see that maybe the growth rates aren’t as strong in the first — in the back-half of this year for that reason. But I think we’re still expecting a bigger second half of the year in Ground Defense as it is, but it will be a little bit lumpy.
Greg Dahlberg: Great. And then one quick one on Commercial Aero, with the guidance reiterated at 12%. I know you mentioned conservatism on the Boeing MAX side. I guess, are there any platforms calling out for positive, I guess, puts and takes there?
Chris Farkas: I think our expectations are really moving in line with Boeing and Airbus production rates largely. Right now, I think when you look at the 737 MAX and we provide a number of products across that platform, now I’d put us at about 35 per month. So I think we’re kind of in line with what Boeing’s expectations are for production. Now that’s not always the case because we are a Tier 2 and we’re usually like six months to 12 months ahead on the cycle. But yeah, we’re seeing some positives certainly across Airbus and widebody platforms.
Greg Dahlberg: Great. Thank you so much.
Operator: Thank you. We go next to Louie DiPalma of William Blair.
Louie DiPalma: Lynn, Chris and Jim, good morning.
Lynn Bamford: Good morning.
Chris Farkas: Hey, Louie.
Louie DiPalma: You discussed strength for your PacStar tactical communications unit and the expansion to the Air Force. Tactical communication seems to be a central focus for the DoD’s JADC2 program to connect sensors and shooters across the military into a unified network. And in April, they announced that JADC2 was deployed in the Middle East. Is PacStar playing a role in that program and is the ramp associated with JADC2?
Lynn Bamford: So your question is very insightful, and the framing of sensor to shooter broadly is a big focus across the DoD broadly. And I’m cautious to say whether specifically we’re involved with JADC2, I don’t think we’ve had any release to say specifically which programs and we talked broadly that we’re in the — across various modernization, tactical communications programs. And we do play in most of the major programs, but I’ll leave without comment specifically on that program. But that trend that you’re talking about is a very real driver of where the DoD is spending money and we are super well-positioned to be able to provide content to solve those problems. And very — the thing I think that — shout-out to the PacStar team if anybody is on listening to the call, they have an unbelievable relationship with their customers and are so in tune to the needs and the direction the DoD wants to take the technology and add features and enhance capabilities and is always continuously rapidly turning the capabilities that we deliver to the warfighter, and we are really excited to expand that out from the army and the marines to now be able to work with the air force as a customer.
And I think it’s early days what we’ll realize in that area.
Louie DiPalma: Great. Thanks, Lynn. That’s it from me.
Lynn Bamford: Thank you.
Operator: We’ll go next now to Sam Struhsaker at Truist.
Sam Struhsaker: Hi, good morning, guys. [indiscernible] First of all, I know you guys just mentioned you’re at about 35 on the MAX and you said you’re seeing some positive trends within widebody. Could you maybe give any more color kind of where you’re at more specifically with like the 787?
Chris Farkas: Yeah. So I would put us at about five per month in ramping. I mean, we’re excited that program is going to be moving towards 10 per month and that ’26 timeframe. But yeah, it’s been a good pickup for us.
Sam Struhsaker: Great. And then I was — you guys raised your margin guide for Defense Electronics, but it looks like for the second half, margins still are going to be down a little bit year-over-year. I was curious if there’s any detail you could provide around that.
Chris Farkas: Well, so margins are definitely going to be stronger in the second half of the year, they’ll be up 150 basis points compared to the first half of the year. And a lot of what we experienced here in the first quarter and it is very, very strong margins, but a lot of it has to do with timing and mix. I mean so our shorter-cycle C5ISR products and tactical communications equipment is a very profitable product and you’re going to see some movement quarter-to-quarter based upon timing of deliveries and where we are in those programs. So on the back half of the year, I think we’re encouraged and we’re going to see a strong surge in Aero Defense, C5ISR is going to be a healthy contributor to that, and also Ground Defense as well.
Sam Struhsaker: Great. And then if I could just sneak one more in. Looking at overall revenue growth for the year, how should we think about that between kind of organic versus acquisition in terms of driving for the full year?
Chris Farkas: Well, currently within our guidance, the WSC acquisition is really only about $10 million to $15 million. So it’s not a significant portion of the overall 5% to 7% growth rate that we put forward.
Sam Struhsaker: Got it, great. Thank you very much.
Lynn Bamford: Thank you.
Operator: We’ll go next now to Tony Bancroft with Gabelli Funds.
Tony Bancroft: Thanks for taking my question. Lynn, Chris and team, you guys have done a great job since we met a few years ago. I just want to think longer-term, sort of maybe like a sort of five-year plus timeframe, how do you see the company growing? You have a couple of different types of businesses or maybe evolving. Is there something that you could do transformational? Obviously, with all that’s going on right now and with M&A or does it make sense to do something more like a financial engineering like spinning off a business to unlock value? Maybe you could just sort of may be a reminder on it, I know you’ll probably talk about it in a couple of weeks, but may be give us a taste of it.
Lynn Bamford: Yeah. So I do actually really appreciate that question because we think about how we plan for the future, we do think of the kind of this near-term, the mid-term, maybe five years to seven years, and then beyond that, and really work hard to do — to assure we’re making investments in setting the stage for the company to continue to grow through these time-frames. And you’re right, this will — you’ll hear a lot about that at our Investor Day here in a couple of weeks on May 21. And so I hope you’ll be able to join us either live or via webcast and we’ll have a lot more time to lay out our strategies for that. But broadly speaking, we remain open to consider a lot of different avenues around the company. And I remember at our Investor Day three years ago, we were asked whether we would consider a transformational acquisition, and we said yes.
